Competitive Sports?

Serious questions continue to arise suggesting that the current Bowl Championship Series (BCS) system may not be conducted consistent with the competition principles expressed in the federal antitrust laws. The Attorney General of Utah has announced an intention to file an antitrust lawsuit against the BCS. In addition, we recently received a request to open an investigation of the BCS from a group of twenty-one professors, a copy of which is attached. Other prominent individuals also have publicly encouraged the Antitrust Division to take action against the BCS, arguing that it violates the antitrust laws.

Although I am somewhat suspicious that the AG of Utah is interested in this issue – after all, the University of Utah Utes are always on the outs in getting into the national championship game, seethis link – I think that the letter and the piece make a very good point.

This is a recurring issue: the anti-competitive nature of a large number of American institutions, in particular in sports organizations. Although the NFL appears to have effectively “won” their case against the players (non) union – seethis link – the issue regarding the players and owners revolved centrally around the anti-competitive nature of the NFL. In another recent decision, the U.S. Supreme Court held that the NFL was not exempt from anti-competitive regulations, like the Sherman Anti-Trust Act.

Where does this leave us? As most of us know, MLB – Major League Baseball – has an exemption from regulations designed to maintain competition in markets. Clearly football and the other sports do not. One might question whether competition in football has made it more competitive than baseball (and why football is soooooo much more financially successful than baseball – according to this study the NFL makes nearly 13% more money than baseball while playing approximately 10% of the regular season games AND competing with basketball, hockey, college football, and college basketball for viewers while baseball competes with…). Query whether competition would improve the game of baseball and draw more fans to games.